Comparing Spotify Technology (NYSE:SPOT) & Angel Studios (NYSE:ANGX)

Spotify Technology (NYSE:SPOT) and Angel Studios (NYSE:ANGX) are both communication services companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, earnings, dividends, analyst recommendations, institutional ownership, valuation and profitability.

Analyst Ratings

This is a breakdown of current ratings and price targets for Spotify Technology and Angel Studios, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Spotify Technology	0	6	17	2	2.84
Angel Studios	1	1	4	1	2.71

Spotify Technology currently has a consensus target price of $609.05, indicating a potential upside of 12.35%. Angel Studios has a consensus target price of $8.50, indicating a potential upside of 86.40%. Given Angel Studios’ higher possible upside, analysts clearly believe Angel Studios is more favorable than Spotify Technology.

Volatility & Risk

Spotify Technology has a beta of 1.59, meaning that its stock price is 59% more volatile than the S&P 500. Comparatively, Angel Studios has a beta of -0.02, meaning that its stock price is 102% less volatile than the S&P 500.

Valuation and Earnings

This table compares Spotify Technology and Angel Studios”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Spotify Technology	$19.44 billion	5.74	$2.50 billion	$16.06	33.75
Angel Studios	$321.56 million	2.65	-$170.48 million	($0.93)	-4.90

Spotify Technology has higher revenue and earnings than Angel Studios. Angel Studios is trading at a lower price-to-earnings ratio than Spotify Technology, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Spotify Technology and Angel Studios’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Spotify Technology	18.44%	41.39%	23.78%
Angel Studios	-37.44%	N/A	-66.19%

Institutional & Insider Ownership

84.1% of Spotify Technology shares are owned by institutional investors. Comparatively, 38.6% of Angel Studios shares are owned by institutional investors. 0.4% of Spotify Technology shares are owned by company insiders. Comparatively, 30.1% of Angel Studios shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Spotify Technology beats Angel Studios on 13 of the 15 factors compared between the two stocks.

About Spotify Technology

Spotify Technology S.A., together with its subsidiaries, provides audio streaming subscription services worldwide. It operates through two segments, Premium and Ad-Supported. The Premium segment offers unlimited online and offline streaming access to its catalog of music and podcasts without commercial breaks to its subscribers. This segment sells directly to the end users. The Ad-Supported segment provides on-demand online access to its catalog of music and unlimited online access to the catalog of podcasts to its users on their computers, tablets, and compatible mobile devices. The company also offers sales, distribution and marketing, contract research and development, and customer and other support services. Spotify Technology S.A. was incorporated in 2006 and is based in Luxembourg City, Luxembourg.

About Angel Studios

Southport Acquisition Corporation does not have significant operations. The company focuses on effecting a merger, share exchange, asset acquisition, share purchase, reorganization, or similar business combination with one or more businesses or assets. It intends to identify business opportunities in the field of financial software space with a focus on mortgage and real estate verticals. The company was incorporated in 2021 and is based in Del Mar, California.